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If you want to create a DVD with just the Lion installer that is pretty straightforward /easy to do. the files will fit on a DVD or lash drive. If you decide to use a flash drive be aware that the software mentioned in the article erases the entire contents of the flash drive.

The easy way requires downloading a piece of donation ware to automate the process. The article has a link to the necessary software. The opening mentions Mountain Lion but the process and software are the same for Lion.

By downloading this app and making a start up disk .Will it affect my current running system ? I only wish to have something to fall back on . In case their would be issues later on. Also this disk would bring the Mac back to normal factory settings correct ?

It should not hurt the current system. Follow the instructions carefully. Once the file has been downloaded do not continue with the installation or the file you need will be deleted upon completion of the installation. This will give you something to fall back on and should get you back up and running with the basic system that can be updated through Software Update.

Assuming that your system is currently working well consider creating a bootable clone of your hard drive. Everything on the drive is copied to an external hard drive. In the event of a disaster you boot the Mac from the external drive and clone back to the internal. To do this you need an external hard drive slightly larger than the internal drive. You also need cloning software . I like this process because, assuming the clone is kept current, I won't have to reinstall much third party software.

"Got Time to breathe. You got time for music." Denver Pyle as Briscoe Darling